JOHANNESBURG (miningweekly.com) – Iron-ore junior Atlas Iron’s strengthened financial and operational position has sparked a “degree of optimism” among board members, chairperson Eugene Davis said on Monday.
Atlas has substantially reduced its costs in recent years by entering into collaboration agreements with its contractors, which reduced their rates and pegged their returns to the iron-ore price and the company’s cash flows. The firm has also restructured its debt in response to the sharp price fall of 2015 and the price volatility that followed.
“At the end of a very challenging 30 months, Atlas is now stronger and leaner, primed to reap the benefits that can stem from a lower cost base, a more robust balance sheet, support from our lenders and shareholders, cooperative contractors and an experienced team with a strong track record of project development, cost reduction and production growth,” Davis said in a copy of the speech delivered at the company’s annual general meeting.
He also told shareholders that the executive search to find a new MD was well advanced. A number of candidates were being considered and the board would announce a new MD before the end of the year.
Atlas nonexecutive director Daniel Harris, who was until recently CEO and COO of Atlantic, in Perth, is currently interim MD. Once a permanent appointment is made, Harris will revert to being a nonexecutive director.
Davis paid tribute to David Flanagan, who retired as MD in August this year. He noted that Flanagan successfully listed Atlas on the ASX in December 2004 and went on to preside over the growth of the company from a junior explorer to a midtier miner producing almost 15-million tonnes a year, generating just under $1-billion a year in revenue.
Atlas shipped 14.5-million tonnes of iron-ore in the 2016 financial year, which ended in June.